Pubdate: Thu, 25 Feb 2016
Source: Globe and Mail (Canada)
Copyright: 2016 The Globe and Mail Company
Contact: http://www.theglobeandmail.com/
Details: http://www.mapinc.org/media/168
Author: Sylvain Charlebois
Note: Professor at the Food Institute, University of Guelph
Page: B4
FOR CANADIAN PHARMACIES, POT IS A GATEWAY DRUG WITH HIGH UPSIDE
Medicinal marijuana is going mainstream - or, at least, it may become
available at many retail outlets. Two major drug chains, Shoppers
Drug Mart and Rexall, have reportedly explored retail distribution of
medical marijuana in recent months. For Shoppers, the reported aim is
to sell several brands, perhaps even under its own private labels.
Imagine: Canadians could soon be purchasing President's Choice pot.
This may sound like a far-fetched idea, but considering how quickly
our marijuana landscape is moving, such a scenario is conceivable.
Both retailers unmistakably see the potential in making such a pre-
emptive move on selling medical marijuana. Similar to energy drinks a
few years ago, marijuana could significantly bolster top-line results
for the next decade or so. The medicinal market would undoubtedly be
a smart gateway into the potentially lucrative recreational market.
With a pot-friendly government in Ottawa, the prospects of seeing
recreational marijuana legalized in Canada is real.
Colorado, which legalized the sale of recreational marijuana a few
years ago, saw its retail sales of the product reach almost $ 1-
billion ( U. S.) in 2015. Most importantly, retail sales generated
more than $ 135- million in new tax revenue for the state and many
analysts expect that number to quadruple soon. Colorado is
essentially getting a piece of what used to be an underground
economy. Washington State is seeing similar results.
From a business perspective, marijuana sales also have obvious
drawbacks. For one, brand equity could be affected by selling what
many consumers still perceive as a forbidden product. Loblaw Cos.,
which owns Shoppers Drug Mart and carries the valuable President's
Choice brand, has likely concluded that benefits outweigh such
downsides, but while society may have become more liberal in its
views, the stakes are very high for these companies. Perhaps, once
Health Canada's blessings are given, our collective perception will
forever change, as appears it to be happening in the United States.
Given the product is marijuana, traceability will be key in moving
forward. Assurances the product can be traced from seed to sale is
critical for product quality and the integrity of the system. As
marijuana takes a larger place in the legitimate economy, more
technologies will be developed to increase production efficiencies
and quality testing. Access to steady supply, helping retailers set
reasonable price points, is also key.
Canada's regulatory scheme is a long way from ready to support retail
marijuana sales. Public education and awareness would be key, but the
issue of taxation also requires deliberation. If Ottawa is going to
tax medicinal marijuana, as some U. S. states are doing, it should be
clear on its underlying intent. The government needs to think clearly
about how it will proceed with recreational marijuana now and in
future. Revenue could be directed to fund research that would gauge
the impacts of cultivation and use, local law enforcement capacity,
neighbourhood-improvement programs and treatment programs. When
giving society access to vices, the moral state can never be too far
away. Government should mitigate against probable undesirable
societal afflictions, as the provinces have done with gambling.
The most critical aspect to allowing marijuana to run more freely
across supply chains is international commerce. The United States has
expressed its concerns about Canada's intention of making marijuana
more readily available to consumers. Even if some states have moved
ahead with the legal distribution of marijuana, many states remain
opposed. Canada must maintain a good relationship with the United
States - the last thing we need is a trade dispute spawned by the
availability of medicinal marijuana.
Our collective wisdom would likely suggest we might not be there yet
as a society. But both Shoppers and Rexall are pursuing what both
companies have done so well for decades: selling drugs to Canadians
responsibly. These companies adhere to a professional code of
conduct. Considering the qualified knowledge and that the
infrastructure is already available, going with privately owned drug
chains only makes sense.
In Ontario, some have suggested a Crown corporation should be the
preferred choice. The idea of granting the Liquor Control Board of
Ontario a licence to distribute marijuana is inappropriate. The
provincial Crown corporation does not have the professional expertise
to sell drugs, nor does it have the capacity or know-how to properly
trace and track such products for quality assurance.
Still, one has to admit that the idea of buying marijuana while
earning Air Miles reward points would have been interesting.
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MAP posted-by: Jay Bergstrom